What is auto insurance? | III

Understanding auto insurance—the basics

car insurance is a sign between you and the policy ship’s company that protects you against fiscal personnel casualty in the consequence of an accident or larceny. In exchange for your paying a agio, the insurance caller agrees to pay your losses as outlined in your policy .
Auto policy provides coverage for :

• Property – such as damage to or theft of your car
• Liability – your legal responsibility to others for bodily injury or property damage
• Medical – the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses

basic personal car policy is mandated by most U.S. states, and laws vary. Auto policy coverages are priced individually ( a la menu ) to let you customize coverage amounts to suit your demand needs and budget .
Policies are by and large issued for six-month or annual timeframes and are renewable. The indemnity company sends a notice when it ’ randomness time to renew the policy and pay your premium.

Who is covered by my auto insurance—and under what circumstances?

Your car policy will cover you and early class members on your policy, whether driving your car or person else ’ south car ( with their permission ). Your policy besides provides coverage if person who is not on your policy is driving your car with your consent .
Your personal car policy only covers personal drive, whether you ’ re commute to work, running errands or taking a stumble. It will not provide coverage if you use your car for commercial purposes—for exemplify, if you deliver pizzas .
personal car insurance will besides not provide coverage if you use your car to provide transportation to others through a ride-sharing service such as Uber or Lyft. Some car insurers, however, are nowadays offering supplementary policy products ( at extra price ) that extend coverage for vehicle owners providing ride-sharing services .

Is auto insurance coverage mandatory?

car policy requirements vary from state to express. If you ‘re financing a car, your lender may besides have its own requirements. about every submit requires car owners to carry :

• Bodily injury liability – which covers costs associated with injuries or death that you or another driver causes while driving your car.
• Property damage liability – which reimburses others for damage that you or another driver operating your car causes to another vehicle or other property, such as a fence, building or utility pole.

In addition, many states require that you carry :

• Medical payments or personal injury protection (PIP), which provides reimbursement for medical expenses for injuries to you or your passengers. It will also cover lost wages and other related expenses.
• Uninsured motorist coverage reimburses you when an accident is caused by a driver who does not have auto insurance—or in the case of a hit-and-run. You can also purchase under insured motorist coverage, which will cover costs when another driver lacks adequate coverage to pay the costs of a serious accident.

flush if PIP and uninsured motorist coverage are optional in your country, consider adding them to your policy for greater fiscal protective covering .

What other types of auto insurance coverage are typical?

While most basic, legally mandated car insurance covers the damage your car causes, it does notcover damage to your own car. To cover your own cable car, you should consider these optional coverages :

• Collision reimburses you for damage to your car that occurs as a result of a collision with another vehicle or other object—e.g., a tree or guardrail—when you’re at fault. While collision coverage will not reimburse you for mechanical failure or normal wear-and-tear on your car, it will cover damage from potholes or from rolling your car.
• Comprehensive provides coverage against theft and damage caused by an incident other than a collision, such as fire, flood, vandalism, hail, falling rocks or trees and other hazards—even getting hit by an asteroid!
• Glass Coverage provides coverage from windshield damage, which is common. Some auto policies include no-deductible glass coverage, which also includes side windows, rear windows and glass sunroofs. Or you can buy supplemental glass coverage.

What is gap insurance and do I need it?

collision and comprehensive lone cover the grocery store value of your car, not what you paid for it—and new cars depreciate quickly. If your car is totaled or stolen, there may be a “ gap ” between what you owe on the vehicle and your policy coverage. To cover this, you may want to look into purchasing gap insurance to pay the difference. note that for rent vehicles, gap coverage is normally rolled into your lease payments .

Next steps: Check out this handy infographic on the types of required and optional drivers policy coverages .

beginning : https://insurecar.info
Category : car insurance questions